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Consumer Portfolio Services
(NASDAQ:CPSS)
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Rating:66Neutral
Price Target:
$10.50
▲(11.94% Upside)
Action:Reiterated
Date:10/24/26
CPSS scores as moderately attractive: technicals are constructive (price above key moving averages) and valuation is supported by a low P/E, while the earnings call reinforced strong origination/revenue momentum and improving credit trends. The main constraint on the score is financial risk from very high leverage and still-modest/volatile profitability, which heightens sensitivity to funding costs and any reversal in credit performance.
Positive Factors
Origination and network growth
Rapid origination growth alongside a much larger dealer network expands the receivables base and increases distribution reach. If underwriting discipline is maintained, this broader channel can support durable portfolio and revenue growth over the next several quarters.
Negative Factors
Very high leverage
The highly leveraged capital structure leaves CPS with limited balance-sheet cushion relative to its debt obligations. Credit losses, weaker recoveries, or funding disruption could therefore have an outsized effect on financial flexibility and the company’s ability to sustain growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Origination and network growth
Rapid origination growth alongside a much larger dealer network expands the receivables base and increases distribution reach. If underwriting discipline is maintained, this broader channel can support durable portfolio and revenue growth over the next several quarters.
Read all positive factors
Consumer Portfolio Services (CPSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$216.86M
Dividend YieldN/A
Average Volume (3M)28.43K
Price to Earnings (P/E)9.1
Beta (1Y)0.37
Revenue Growth13.41%
EPS Growth21.23%
CountryUS
Employees913
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding21,905,186
10 Day Avg. Volume26,846
30 Day Avg. Volume28,428
Financial Highlights & Ratios
PEG Ratio-4.77
Price to Book (P/B)0.66
Price to Sales (P/S)0.48
P/FCF Ratio0.71
Enterprise Value/Market Cap20.51
Enterprise Value/Revenue9.85
Enterprise Value/Gross Profit13.32
Enterprise Value/Ebitda28.42
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.45
Revenue Forecast (FY)$530.65M
Consumer Portfolio Services Business Overview & Revenue Model
Company Description
Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in...
How the Company Makes Money
CPSS primarily makes money by acquiring auto retail installment contracts at a discount and earning finance income over time as borrowers repay those loans. Its core revenue stream is interest income and fee-related income generated from its portf...
Consumer Portfolio Services Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 18, 2027
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: strong, sustained originations growth (QoQ and YoY), rising revenues, improved profitability and portfolio growth, plus meaningful improvements in several credit metrics and record equity/cash positions. Management maintained disciplined underwriting while expanding sales and dealer networks, and they increased securitization/warehouse capacity. Key risks are higher funding costs (interest and securitization rates), ongoing elevated delinquencies/charge-offs (albeit improving), and recoveries that remain below historical targets. On balance, the positives — robust originations, revenue and earnings growth, portfolio expansion, and improving credit trends — outweigh the listed challenges.Positive Updates
Originations Surge
Quarterly originations of ~$757–758M (Q2 2026) with quarter-over-quarter originations up over 40% and year-over-year Q2 originations up ~75% versus $433M in Q2 2025; 6-month originations of ~$1.3B (up ~47% vs prior-year 6 months).
Negative Updates
Rising Interest and Financing Costs
Interest expense for Q2 was $64M, up 9% YoY (from $58M) driven by higher securitization debt required to finance increased originations; management flagged sensitivity to higher interest/securitization rates and geopolitical risks (e.g., Iran war) that could raise funding costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Originations Surge
Quarterly originations of ~$757–758M (Q2 2026) with quarter-over-quarter originations up over 40% and year-over-year Q2 originations up ~75% versus $433M in Q2 2025; 6-month originations of ~$1.3B (up ~47% vs prior-year 6 months).
Read all positive updates
Company Guidance
Management's guidance was cautiously optimistic: they said recent strong originations should continue and drive further growth, noting Q2 originations of about $758M (up ~75% YoY and >40% sequentially; $1.3B for the first six months), Q2 revenue of $121.4M (+11% YoY; $233.7M for 6M, +8%), a fair value portfolio of $4.2B (up 18% YoY) yielding 11.3% net of credit losses, and warehousing above $900M with $180.2M of cash (+12% YoY). Profitability improved (Q2 pretax $9M, +29% YoY; net income $6.2M, +30%; diluted EPS $0.27 vs $0.20) even as interest expense rose ($64M, +9%), core operating expenses remained controlled ($48.1M, +9%; core op expense 4.6% of managed portfolio vs 4.8% prior) and return on managed assets was 0.9% (vs 0.8%). Management emphasized they will keep a tight credit box (approval rate ~51%; payment-to-income and DTI stable) given improving credit trends (DQ>30 12.16% vs 13.14% YoY; net charge-offs 7.28% vs 7.45%; recoveries 33.3% vs 30.4% with vintage recoveries of 22%–47.1%), driven by more applications (1.1M vs 777k, +42%), a larger sales force (149 reps vs 93) and 11,889 active dealers (+84% YoY); they noted securitization markets remain strong but lower interest/securitization rates would further help.Consumer Portfolio Services Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 451.55M | 427.97M | 393.51M | 352.01M | 329.71M | 267.81M |
| Gross Profit | 333.88M | 426.21M | 207.56M | 227.68M | 270.29M | 207.16M |
| EBITDA | 156.48M | 260.03M | 28.29M | 61.94M | 117.81M | 67.42M |
| Net Income | 21.61M | 19.32M | 19.20M | 45.34M | 85.98M | 47.52M |
Balance Sheet | ||||||
| Total Assets | 4.42B | 3.86B | 3.50B | 2.91B | 2.76B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 7.50M | 6.32M | 137.40M | 125.43M | 162.79M | 176.55M |
| Total Debt | 4.01B | 3.51B | 3.16B | 2.57B | 2.48B | 1.95B |
| Total Liabilities | 4.10B | 3.55B | 3.21B | 2.63B | 2.53B | 1.99B |
| Stockholders Equity | 319.25M | 309.54M | 292.77M | 274.67M | 228.39M | 170.21M |
Cash Flow | ||||||
| Free Cash Flow | 350.43M | 288.29M | 233.32M | 237.42M | 213.78M | 196.22M |
| Operating Cash Flow | 350.54M | 289.00M | 233.75M | 237.98M | 215.93M | 198.19M |
| Investing Cash Flow | -926.25M | -590.12M | -769.71M | -359.53M | -713.90M | -115.36M |
| Financing Cash Flow | 595.75M | 335.93M | 547.92M | 84.19M | 484.21M | -50.44M |
Consumer Portfolio Services Technical Analysis
Positive
9.38
Price Trends
9.28
Positive
9.35
Positive
9.01
Positive
Market Momentum
<0.01
Negative
64.34
Neutral
60.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSS, the sentiment is Positive. The current price of 9.38 is above the 20-day moving average (MA) of 9.18, above the 50-day MA of 9.28, and above the 200-day MA of 9.01, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 60.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPSS.
Consumer Portfolio Services Risk Analysis
Consumer Portfolio Services disclosed 34 risk factors in its most recent earnings report. Consumer Portfolio Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Consumer Portfolio Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.66B | 11.74 | 32.35% | ― | 2.58% | 32.02% | |
71 Outperform | $422.62M | 22.98 | 4.95% | ― | -2.34% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.41B | 8.37 | 23.07% | 7.54% | 6.93% | 19.96% | |
66 Neutral | $216.86M | 9.08 | 7.48% | ― | 13.41% | 21.23% | |
63 Neutral | $302.05M | 6.57 | 12.49% | 3.67% | 9.63% | 40.75% |
* Financial Sector Average
CPSS
Consumer Portfolio Services
9.90
2.09
26.76%
CACC
Credit Acceptance
545.04
41.93
8.33%
RM
Regional Management
32.74
-5.74
-14.91%
OMF
OneMain Holdings
55.72
1.50
2.77%
OPRT
Oportun Financial
9.19
3.63
65.29%
Consumer Portfolio Services Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Closes Fourth 2026 Securitization
Positive
Oct 21, 2026
On October 21, 2026, Consumer Portfolio Services closed its fourth term securitization of 2026, a $767.85 million offering of asset-backed notes backed by $797.36 million in automobile receivables. The notes, issued through CPS Auto Receivables Tr...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Expands Credit Facility Above $1 Billion
Positive
Oct 13, 2026
On October 9, 2026, Consumer Portfolio Services amended its two-year revolving credit agreement with Capital One and a subordinate lender, increasing the facility’s capacity from $390 million to $518 million to support rising loan originatio...
Business Operations and StrategyFinancial Disclosures
Consumer Portfolio Services Highlights Subprime Auto Lending Growth
Positive
Aug 25, 2026
In June 2026, Consumer Portfolio Services released an investor presentation detailing its operations, portfolio metrics and market positioning in the subprime auto lending sector. The materials underscored that CPS serves a predominantly non-prime...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Completes $80 Million Residual Securitization
Positive
Aug 21, 2026
On August 18, 2026, Consumer Portfolio Services announced it had closed an $80 million securitization of residual interests tied to seven prior CPS auto loan securitizations issued between April 2022 and April 2026. The asset-backed notes, carryin...
Business Operations and StrategyPrivate Placements and Financing
Consumer Portfolio Services Completes Record Auto Receivables Securitization
Positive
Jul 24, 2026
Consumer Portfolio Services, Inc., an independent specialty finance company, provides indirect auto financing to borrowers with weaker or limited credit through contracts purchased from franchised dealerships and secured primarily by late-model us...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.